You are requested to make monthly deposits of Rs. 300 into the bank account of a daughter, for the university education that pays 12 percent interest compounding monthly. If your first deposit will be made one month from now, how much you will have in your daughter account after 20 years.

The first deposit will be made one month from now, therefore it is an end of the month deposits, indicate ordinary annuity

Monthly rate or r 12% / 12 = 0.01; n or nper yrs * 12months in a year 240; Monthly annuity 300

Future value of Ordinary Annuity formula = annuities* (((1+r)^n)-1) / r

300 * (((1.01)^240) -1) / 0.01)

300 * (10.89255365 -1) / 0.01)

300 * (9.89255365 / 0.01)

300 * 989.2553654

Rs 2,96,776.61

or

Method 2 / Excel Method

You can use the FV function in excel

FV(Rate, NPER, PMT, PV, Type)

rate 1%; NPER 240; PMT 300

FV(1%,240,300)

Rs 2,96,776.61